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'Chinese investors' eyeing $6b refinery project in Riau Islands: Official
The official who made the announcement did not name either the investors or the project.
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Maritime and energy sovereignty deputy Purbaya Yudhi Sadewa of the Coordinating Maritime Affairs and Investment Minister's Office speaks at a virtual press conference on June 9, 2020. (screenshot/screenshot)
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hinese investors plan to develop a multibillion-dollar oil refinery in Batam, Riau Islands province, an official with the Office of the Coordinating Maritime Affairs and Investment Minister has said.
Maritime and energy sovereignty deputy Purbaya Yudhi Sadhewa told an online press conference on Tuesday that the investors had sent a letter addressed to the Coordinating Minister's Office, “asking for our agreement to support an investment worth around US$5 to $6 billion”.
Purbaya did not identify the investors or provide details on the refinery’s installed capacity. He pointed out that foreign investors were still interested in Indonesian refineries, despite recent developments that suggested otherwise.
State-owned energy holding company Pertamina said earlier this year that two foreign companies had pulled out of two Indonesian megaprojects, with Saudi Arabia’s Aramco and Italy’s Eni withdrawing respectively from the Cilacap and Plaju refinery projects.
“I am optimistic that we can [proceed with these] investments if we guard them well,” said Purbaya.
The unnamed Chinese investors also sought to export some of the refinery’s output, which was why they planned to develop the project in the Riau Islands, he added.
The provincial capital of Batam is just across the Singapore Strait from the island nation and is the closest point in Indonesia to Singapore.
Purbaya said it appeared that the investors may not be required "to partner with Pertamina for the refinery", but that some of the refinery’s output "might need to be adsorbed domestically”.
